Description
SYLLABUS
MODULE – I:
(1) Scope and Objectives of Financial Management:
- Financial Management – Introduction, Meaning, Scope, Objectives, Profit v/s Value Maximization. Strategic Financial Management – Need and Importance Corporate, Business and Functional Strategy.
- Financial Planning – Need and Importance, Interface of Financial Policy and Strategic Management Relationship of Finance to Economics and Accounting Role of Financial Manager.
(2) Capital Budgeting – Project Planning and Risk Analysis:
- Introduction – Capital Budgeting Process, Project Classification and Investment Criteria. Techniques of Capital Budgeting – NPV, Benefit Cost Ratio, Internal Rate of Return, Modified Internal Rate of Return, Payback Period, Discounted Payback Period and ARR. (Inclusive of Estimation of Project Cash Flows).
- Capital Rationing – Meaning, Need and Dealing with Capital Rationing Problems Risk Analysis in Capital Budgeting – Sources and Perspectives of Risk, Sensitivity Analysis, Scenario Analysis, Simulation Model, Decision Tree Analysis and Break – Even Analysis.
MODULE – II:
(3) Time Value of Money:
- Concept, Present Value, Annuity, Techniques of Discounting, Techniques of Compounding.
- Bond Valuation and YTM.
(4) Financial Decisions:
- Cost of Capital – Introduction, Definition of Cost of Capital, Measurement of Cost of Capital, WACC, Marginal Cost of Capital.
- Capital Structure Decisions – Meaning, Choice of Capital Structure, Importance, Optimal Capital Structure, EBIT – EPS Analysis, Cost of Capital, Capital Structure and Market Price of Share, Capital Structure Theories, Dividend Policy – Pay Out Ratio Business Risk and Financial Risk – Introduction, Debt v/s Equity Financing, Types of Leverage, Investment Objective/Criteria for Individuals / Non-business Purpose.
